Theoretical and empirical research in economics suggests that bilateral migration triggers bilateral trade through a number of channels. This paper assesses the functional form of the impact of migration on trade flows in a quasi‐experimental setting. We provide evidence that the relationship is not log‐linear. In particular, at small levels of immigration (stocks) the elasticity of trade to migration is quite high, and it declines to zero at about 4,000 immigrants. If immigration stocks exceed such a level, the evidence suggests that trade will not increase anymore. This suggests that for cross‐country network and other effects flowing from immigration to materialise at a significant level for trade, a high‐enough level of immigrant stocks is necessary. But there appears to be satiation as immigrant numbers increase.

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Geo-economic tensions and global collective action problems call for international cooperation to revise and develop rules to guide both the use of domestic subsidies and responses by governments to crossborder competition spillover effects. Current WTO rules that divide all subsidies into either prohibited or actionable categories are no longer fit for purpose. Piecemeal efforts in preferential trade agreements and bi-or trilateral configurations offer a basis on which to build, but are too narrow in scope and focus. Addressing the spillover effects of subsidies could start with launching a work program at the 12th Ministerial Conference of the WTO to mobilize an epistemic community concerned with subsidy policies, tasked with building a more solid evidence base on the magnitude, purpose and effects of subsidy policies.

This paper highlights analytical reasons why we believe trade and technology are linked to wage movements in general, and how we should organize our examination of the recent episode of wage and employment erosion in the OECD countries. We start with a graphic tour through the mechanics of general equilibrium theory on trade and wages. This provides a set of implied relationships between wages and factor intensity trends that, together, provide a casual test of the consistency of posited relationships with actual trends. Numeric analysis and a review of the general equilibrium empirical literature follow the theoretical overview.

This paper surveys current theoretical and empirical research on international migration with a particular emphasis on the links between trade theory and labour empirics.

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